Landis+Gyr Reports Significant FY 2024 Financial Outcomes and Future Expectations
Landis+Gyr Reports Significant FY 2024 Financial Outcomes
Landis+Gyr Group AG, a prominent global player in integrated energy management solutions, revealed its unaudited financial results for the fiscal year 2024, which covers the period from April 1, 2024, to March 31, 2025. The results showcase a robust order intake alongside a backdrop of revenue fluctuations, setting the stage for an exciting future.
Financial Overview
The company reported an exceptional order intake totaling USD 2.6 billion, a remarkable increase of 33.3% year-over-year. This significant growth was fueled by successful contracts across all operational regions, resulting in a book-to-bill ratio of 1.5. Furthermore, Landis+Gyr also recorded a committed backlog of USD 4.6 billion, reflecting an increase of 22.9% year-over-year.
However, the fiscal year was also characterized by challenges, as the net revenue stood at USD 1,729.3 million, marking a 10.5% decline in constant currency due to the absence of high demand realizations from 2023 and adverse tariff impacts on shipment timings in March. The first half of FY 2024 also revealed some soft demand within the EMEA (Europe, the Middle East, and Africa) region.
Adjusted EBITDA declined to USD 170.9 million, a 25.7% decrease from the previous year, impacted largely by lower operating leverage and an inventory write-off of USD 20 million. Nonetheless, stringent expense management maintained an EBITDA margin at 9.9%, with an adjusted EBITDA margin climbing to 10.4% when excluding unusual effects.
The company announced a net loss from continuing operations of USD (84.7) million, equating to USD (2.97) per diluted share, largely due to a non-cash goodwill impairment totaling USD 111.0 million. Operating cash flow also saw a decline to USD 78.9 million, down 34.9% owing to decreased profitability and increased working capital requirements.
In response to these results, the company proposed a reduced distribution of CHF 1.15 per share, aiming to preserve its balance sheet strength. Looking forward, Landis+Gyr provided guidance for FY 2025, projecting net revenue growth between 5% and 8% and an anticipated adjusted EBITDA margin ranging from 10.5% to 12.0%.
CEO and CFO Insights
Peter Mainz, the CEO of Landis+Gyr, commented on the results, emphasizing the resilience and strength of their business model, which is significantly reflected through the record order intake and unprecedented backlog. He stated, “This success was driven by our team delivering key wins in the Americas and Asia Pacific, alongside a notably solid performance in EMEA. We remain confident in our long-term growth trajectory, supported by the record-high backlog and pipeline.”
Mainz also indicated that the new management team is progressing well with their strategic transformation, mentioning the completed exit from the electric vehicle charging market as a key highlight. The increased adoption of grid-edge technology is also recognized as a crucial factor addressing the rising energy demand.
Davinder Athwal, the CFO, remarked that FY 2024 served as a transition year for Landis+Gyr, and the outlook appears promising. “We expect 5% to 8% growth in revenue and an improvement in our margins for FY 2025. Moreover, we feel well-positioned to manage the costs associated with tariffs, projecting minimal impacts for 2025.”
Commitment to Sustainability
Landis+Gyr continues to prioritize sustainability as a cornerstone of its operational philosophy. The company reported avoiding 9 million tons of CO2 in FY 2024, underlining its commitment to decarbonizing the grid and enhancing energy efficiency across its operations. With around 6,300 employees across various continents, the company is dedicated to fostering innovation in energy management.
As Landis+Gyr prepares for FY 2025, it stands as a beacon of resilience and strategic growth in the energy management sector, ensuring robust operational foundations in an ever-evolving marketplace. It will be interesting to observe how the initiatives outlined to enhance revenue and profitability unfold in the coming year.